The process for getting a personal loan isn’t difficult, and it can happen quickly if you’re prepared. Be ready with the right information, such as knowing steps to getting a personal loan, how to get a personal loan depending on your credit, requirements for personal loans, and personal loan eligibility.
- 7 steps to get a personal loan
- How to get personal loans with excellent credit
- How to get personal loans with fair credit
- How to get personal loans with poor or no credit
- How to qualify for a personal loan
- What should you do if you’re denied?
- FAQs
7 steps to get a personal loan
When researching the best personal loan options and deciding whether it’s right for you, it can help to know the steps involved for securing one.
1. Check your credit score
Since it’s easier to get a low interest rate and better terms with an excellent credit score, the first step in getting a personal loan is to know what your credit score is. If it could use improvement, take steps now to increase it. Otherwise, you can use this information when prequalifying or estimating rates.
2. Compare estimated rates
Once you know your credit score, also have a clear understanding of the loan amount you need and how long you want to have the loan for (the term). Start researching different lenders and comparing estimated rates based on your credit score and loan amount.
You can also use a personal loan calculator to compare personalized estimates.
If your estimated rates are too high, now is the time to consider a cosigner or secured personal loan.
3. Get prequalified for a loan
To help you compare more personalized rates and terms, prequalify for the loan if the lender allows it. This gives you the opportunity to preview your specific estimated rate before you apply. This will only trigger a soft credit check, so it will not affect your credit score. It does not automatically qualify you for a loan and your actual rate could differ, but it will give you a good idea for comparison.
4. Shop around and compare lenders
Do your research with different lenders, as each offers different rates, terms, fees, customer service ratings and reviews, and types of loans. Consider what you need the loan for (such as debt consolidation, for a wedding, or for medical bills) and find a lender that offers loans designed for your specific needs.
